Task G: Risk Management Flashcards
Risk Management:
A Logical Process of weighing the potential costs of risk against possible benefits.
4 Principles of Risk Management:
Accept no unnecessary risk
Make risk decisions at the appropriate level
Accept risk when benefits outweigh the costs
Integrate Risk Management into planning at all levels:
Risk Management: Accept no unnecessary risk
One that doesn’t provide comparable return in terms of benefits.
Risk Management: Make risk decisions at the appropriate level:
The decision makes must be authorized to accept levels of risk
Risk Management: Accept risk when benefits outweigh the costs:
Benefits should be compared to the costs
Risk Management: Integrate Risk Management into planning at all levels:
Risks are more easily assessed and managed in the planning stages of operation.
Risk Management Process:
Risk Management identifies operational hazards and takes reasonable measures to reduce risk.
6 Steps in Risk Management:
Identify the Hazard Asses the risk Analyze risk control measures Make control decisions Implement Risk Control Supervise and Review
6 Steps in Risk Management: Identify the Hazard
experience, Common Sense
6 Steps in Risk Management: Asses the risk
Determine possibility of accident that could result from exposure to hazard
6 Steps in Risk Management: Analyze risk control measures
Specific strategies, tools, eliminate risk
6 Steps in Risk Management: Make control decisions
Must choose best control or combination of controls
6 Steps in Risk Management: Implement Risk Control
A plan for applying selected controls must be formulated and time, materials, and personnel to put measures in place must be provided
6 Steps in Risk Management: Supervise and Review
Once controls are in place, the process must be reevaluated to ensure effectiveness.
Levels of Risk:
Severity
Probability
Levels of Risk: Severity
The extent of possible loss
Levels of Risk: Probability
The likelihood that a hazard will cause a loss.
Assessing Risk:
Likelihood of an event
Severity of an event
Likelihood of an event:
Probable
Occasional
Remote
Improvable
Likelihood of an event: Probable
An event will occur several times
Likelihood of an event: Occasional
An event will probably occur sometime
Likelihood of an event: Remote
An event is unlikely to occur, but is possible
Likelihood of an event: Improvable
An event is highly unlikely to occur
Severity of an event:
Catastrophic
